Good Class Notes are Not Enough
Past successful students have commented that taking good notes is important. Other studies
have supported the idea that taking careful notes improves student performance. However, just
because you have good notes doesn’t mean you can do well on a test. Below are some
examples.
The point is: You need to do more than take good notes. You need to remember and recall what
is in those notes.
A standard question asked on the first midterm is “What is economic growth and what causes an
economy to grow?”
Here are two student answers that got 4 out of 4 points:
4 point answer #1:
Economic growth is a permanent or sustained growth a real production per capita.
Economic growth was primarily fueled by the introduction of new technology in
investments in physical in human capital. On the secondary level, economic growth is
also fueled by property rights, by which the State and individuals hold the rights rather
than the government. Also, a stable government and an open market economy assist in
growth. Economic growth may be hindered by a large population and a surplus of natural
resources and capital as it is more difficult for the rich to become increasingly wealthy.
4 point answer #2:
Economic growth is a permanent increase in production per person (per capita).
Factors that contribute to growth are: increase in technology
increasing capital both human capital and physical capital
some secondary causes of growth are property rights, stable government
Here are some examples of expanded answers that got 0 or 1 points out of 4. I give you both the
answer written in the exam and a copy of the students notes. I also comment on the student’s
answer. Please note how different the test answer is from what the student wrote in their notes.
Student 1:
Answer on Test:
Economic growth is a measurement of how fast an economy is growing.
Economy can grow by having a large growth rate (adds to working population),
using natural resources to produce more goods (exports), investments and
having a cash surplus.
Instructor’s Comment on Student’s Answer:
The first two sentences are meaningless. You can’t define growth by saying
“growth when something grows.” The comments in the parenthesis don’t make
sense. If natural resources are limited, then they won’t cause growth. “Cash
surplus” is meaningless. Only “investment” makes any sense to this answer.
Student’s Notes:
economic growth: an increase (permanent) in real production/income per person
Capital and technology lead to growth. Technology has been number one
source of growth.
What makes an economy grow? Increase in technology and investments.
Increase in capital through investment.
Things that do not make an economy grow!
Increase in labor
increase in population
land (is finite)
Primary -- increase in technology,
physical capital: tools, buildings, machines
human capital: education, experience, skills
Secondary -- stable government
no trade restrictions
property rights
Hinder or limit growth:
fast-growing population -- stress on capital/land
having lots of capital -- diminishing returns
Limited natural resources or
Student 2:
Answer on Test:
Economic growth is measured as an increase in the overall production of goods
and services in an economy. There are five major contributors to economic
growth: land, labor, capital, laws, technology. All of which affect growth to
different degrees and in different ways.
Instructor’s Comment on Student’s Answer:
The definition is missing the “permanent” or “sustained” piece to get credit.
Labor does NOT cause growth, nor does land if natural resources are limited.
Notes:
Growth: permanent increase in real production per person
a sustained increase in productivity
What causes growth?
I. Increases in technology
the largest factor contributing to growth in industrial nations
responsible for half of all growth in the 20th century
comes from "investment" in research and development
II. Increases in capital
capital is increased by investment
* investment is fundamental to economic growth
two types of capital: each are equally important in growth
physical capital: tools, buildings, machines
human capital: tools people have in their heads. Example: skills,
education, experience
Secondary causes of growth
property rights: places where individuals one property tend to grow faster
stable government: countries with basically stable government usually
grow faster
open economies: economies who do not restrict trade, and who trade
openly with others usually grow faster
All of the secondary causes are institutional causes of growth
Institutional restrictions can make or break growth
Students 3
Answer on Test:
Economic growth is a measure of how faster economy is growing. To make an
economy grow you need new technology and capital. An economy won't do well
if all your resources of production come from elsewhere.
Instructor’s Comment on Student’s Answer:
The first sentence is meaningless. The second sentence is good, worth one
point. I’m not sure what is meant by the last sentence.
Notes:
Growth: sustained, ongoing, permanent increase in real production per person
(productivity)
What causes growth?
Labor does not cause growth
land does not cause growth in the 21st-century
technology: increases in technology. Responsible for about half of growth,
investment in research and development
increases in capital: increase capital by investment
equally important: physical capital, tools buildings machines
human capital -- tools people have in their head, skills, education,
experiences, learned abilities
Secondary causes:
property rights
Stable government
open economy's in
all three of these are institutions
Hinder or limit growth
fast-growing population
having lots of capital (grows more slowly), diminishing returns
convergence -- "catch up effect"
Limited natural resources
extreme view 1: don't worry, be happy
extreme view 2: we are doomed, Malthus -- "the dismal science"
Student 4
Answer on Test:
Economic growth is when there is a rise in GDP. GDP is measured as
consumption, investment, governments, and net exports. All of these factors
contribute to the growth of economy.
Instructor’s Comment on Student’s Answer:
The definition, first sentence, is missing a statement about sustainability or
permanence. C, I, G, NX are the components of GDP, they are not what makes
GDP grow.
Notes:
*What is economic growth?
*get definition perfect!
A permanent increase in real production per person
productivity -- measured per worker
Primary causes of economic growth
increase in technology
increase by investing in research and development
increasing capital
increase by investment
(fundamental cause of growth is investment)
physical capital: tools, buildings, machines
human capital: tools people have in their head
both are equally important to growth
Secondary causes of economic growth
property rights
stable government
open economy's
Limiting factors
population growth
having lots of capital -- diminish returns -- convergence -- catch up effect
natural resources -- different views about natural resources
extreme 1 -- don't worry, be happy -- not running out of natural
resources
extreme 2 -- we are doomed